Should I use a 401k loan to get started?

[Adam Williams]

We're just starting out, and I'm considering using a 401k loan to help buy BRRRR properties. We'd be paying it back within a few months once we refinance. There's obviously some risk. And we'd bringing some of our own cash as well to the deal.

Have any of you used a 401k loan to buy rental properties? What'd you think? Would you recommend it?

Thanks!

[Carlos M.]

@Adam Williams, As long As it’s a “loan” there are no real tax penalties for borrowing the money. If you “cash out” your 401k that’s a different story.... but go for it man. It’s like being your own hard money lender , and you keep the interest! We used 401k loans on two of our deals... we now have 61 units with a market value of about 6 million...